Nevada’s First Year of Cannabis Sales Surpasses Expectations

Nevada’s first year of sales has exceeded the expectations of predictions by regulators in Nevada and industry insiders. The state managed to conduct $195 million in sales in the first six months. Washington and Colorado’s first six months of sales amounted to $67 million and $114 million.

Nevada’s total gain from the taxes levied on recreational sales of cannabis totaled to $26.5 million. The total from the 15% wholesale tax on medical cannabis came to a total of $24 million that will go to schools after 1/3rd is used on local and state administrative costs. It is estimated that $17 million will go to Las Vegas and Clark County schools and a divided $8 million will go to the rest of the schools.

Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “ The Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”